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ASSIGNMENT Zero.2 | Đình Giang, Khánh Thy, Nhật Minh, Kỳ Vỹ
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| BUSINESS OVERVIEW |
Gillette is market leader in Vietnam shaving category with fragmented competition
42.9 43.344.3
45.446.3
46.9
40
41
42
43
44
45
46
47
48
2007 2008 2009 2010 2011 2012
No 1 shaving brand with constant growth over year
CHALLENGE: How to increase 20% profit ($0.8MM) in the upcoming year
Positioning:
Expert in male grooming
Low price product for
low-tier segment
Vs.
Strong brand equity and differentiation from competitors
But, Gillette’s performance is still behind P&G goal
Share
Source: P&G Asian Business Challenge 2012
| SOURCE OF GROWTH |
MARKET DEVELOPMENT
MORE USERS
Recruit new category user
Steal competitors’
users
MORE USAGE
Frequency Dosage/usage
MORE BENEFITS
Increase consumer base Increase usage per consumer
Increase purchase value
per consumer (by
providing extra benefit)
Let’s consider three sources of growth for Gillette…
|Scenario 1: MORE USER |RECRUIT NEW CATEGORY USER: not enough room to grow
STEAL COMPETITORS’ USERS: have overcome two challenging barriers
Have to break the sales record
Increase $0.8MM profit increase $2.8MM revenue/year ~ 9% share/year while Gillette obtained only 4% share up from 2007 to 2012
Have to steal low-tier consumer while it’s difficult to change their shopping behavior
30.0%17.9%
49.2%
20.7%
20.8%
61.4%
0%
20%
40%
60%
80%
100%
Total market Gillette
1st tier
2nd tier
3rd tier
Gillette already
captures high-tier
segment
Value share by segment
Blades and razor penetration is already high at 92%. 8% market left is not enough for P&G ambition
Usage & Attitude of low-tier consumers:
-Price conscious (buy products with 60% index to Gillette)
- Stick to current brand with basic benefits (influenced by Dad/Brother)
Source: Kantar World panel 20124
| SCENARIO 2: MORE USAGE |
It’s take time to change shaving behaviors of Vietnamese guy.They have low frequency of shaving due to both biological and social reasons
1.9 shaves/week 4.5 shaves/week
BIOLOGICAL REASONS:-Vietnamese men have 67% less hair than Western guy
SOCIAL REASONS:- 68% Vietnamese guy likes to have beard- 56% have high willingness to have beard
Vietnam guyWestern guy
Vs.
Source: Kantar World panel 2014
Observation against more usage strategy:Men have tendency to buy new razor/blades according to how much time used rather than how many times used Shaving more (with insignificant incremental) may not make consumer change razor more frequently
| Scenario 3: More benefit |There is promising opportunity to up-trade low-tier segment to higher-tier segment
Double edge and low-price disposable user generates low purchase value per year
4,986
21,488
25,024
60,640
28,560
100,320
135,660
Superthin Double Edge 1 unit
Superthin II Dispo 1 unit
Blue II Dispo 1 unit
Blue 3 Dispo 1unit
Vector Cart 1 unit
Mach 3 Cart 1 unit
Fushion Proglide Razor
Fushion Proglide Cart 1 unit
Big gap between value and volume of double edge and disposable
Less than 30k/year
20.8%
61.4%13.2%
20.7%66.0%
17.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Volume Value
Double Edge
Disposable
Systems
Gillette volume and value share by variants Average purchase value/buyer/year by variants
| SOURCE OF GROWTH |
MARKET DEVELOPMENT
MORE USERS
Recruit new category user
Steal competitors’
users
MORE USAGE
Frequency Dosage/usage
MORE BENEFITS
More benefit or uptrading is suitable strategy to obtain 20% profit increase in one year
Who are current buyer of Double Edge and Low-price disposables?
Double Edge
Low-price disposable
Using double edge is a long-lasting habit that formed since they were youngSatisfy with basic functional benefits
Skew to Men 40+ (70%)
A part is Young male 15 -20 (15%)
Be influenced by Dad to use Double Edge since the first time shaving
Skew to Men 18 – 35(85%)
Care for appearance Smart shopper, need strong RTB to uptrade
The Old Men
The Early
Adopter
The Smart User
Select Early Adopter and The Smart User as Target consumer for uptrading
since they are more open to try new things
Source: Research on shaving behaviors by group 2– Sample size:124
• Friction while shaving: No lubricant/low lubricant
products doesn’t slide against skin
• Hairline isn’t cleared completely
• Nick and Cut happens regularly while using
double edges
TRIGGER AND BARRIER FOR UPTRADING
Friction while shaving is No1 unmet
need
Price gap are top concern
for uptrading to System
Recommended Retail Price (VND)
Superthin Double Edge 1 unit 1,520
Superthin II Dispo 1 unit 7,900
Blue II Dispo 1 unit 9,200
Blue 3 Dispo 1unit 18,950
Vector Razor 29,000
Vector Cart 1 unit 11,900
Mach 3 Razor 92,000
Mach 3 Cart 1 unit 62,700
Fushion Proglide Razor 199,500
Fushion Proglide Cart 1 unit 99,750
1
2
3
Blue 3 is affordable variant to solve unmet need of target consumersOnly need to convert 20% Super Thin II User, 20% Blue II user, 5% Double Edge user to Blue 3 to meet profit targer
CONSUMER INSIGHT
Shaving is uncomfortable activity that I have to experience daily since my razor does not slide
against skin and completely clean hairline. But after all, I think it is a
part of normal shaving
Consumer
truth
Brand
truthCategory
truth
Enhance lubricant strip: razor easily slide against and help moisturize skin after shaving
Triple blades: completely clean hairline
“The best disposable razor a man can get”
OUR RECOMMENDED STRATEGY
Upgrade Low-price Disposable and
Double Edge users to use Blue 3
Target consumers
_ “Vietnam 1 and Vietnam
2” group
- Age: 15 - 35
_ Current users of low-price
disposable or Double Edge
of Gillette
Proposition
Blue 3
Expert disposable razor help clean hair
completely in very smooth way
Communication Idea
ONE SLIDE TO THE GOALThe Gillette Blue 3 with triple blades and enhanced
lubricant strips will help you to shave faster, safer and
cleaner so that you can overcome obstacles and slide
to the goal in a smooth, fast, clean and safe way .
LƯỚT ÊM VỀ ĐÍCH
Expert disposable razor help clean hair completely in very smooth
way
Proposition
How to
illustrate One slide cleans hair completely
Platform Football – Men’s religion of Vietnamese guys
+
- The scene will be divided into 2 parts.
- The left side presents a man holding a Blue 3 razor and about to shave. The right side present a football
player holding a ball under his feet, there are a lot of defender in front of him.
- On the left side, the man begins to shave smoothly as the football player dribbles through defenders very
smoothly to the goal.
- At the end, the man only take 1 continuous slide to shave his face as the football player by himself going
through all the defender to the goal and score.
The TVC aims to illustrate the smooth and clean of Blue 3 like strength and skills of the football player.
TVC CONTENT
EVENT THE “ONE SLIDE” SHAVING CHALLENGE.
- Gillette will hold an event with UEFA Euro 2016 theme
and invite men to join in.
- Men will be given a Blue 3 razor and will be ask to
overcome the “One slide” shaving challenge which ask
the man to shave their beard entirely with only one
continuous slide.
- With the design of Blue 3 with 3 blades and enhanced
lubricant strips, they will feel it very smooth and clean to
shave with Blue 3.
- The activities will be recorded and awards as ticket to
France to watch UEFA Euro 2016 will be given to the
participant.
- Besides, when come to the event, they can also have
chances to exchange their old razor for a new Blue 3
razor.
One slide to EUROPE
INSTORE ACTIVITIES At DT (high frequency stores)
and MT
- Product will be displayed and
mẻchandised in the theme of
blue, football and UEFA Euro 2016.
- The package of Blue 3 razor will
be displayed in the way that the
consumer can not immediately
get it but they have to hold the
package and slide along the long
curvy steel sticks to get the
package out. They will feel the
one slide of Blue 3.
ASSIGNMENT Zero.2 | Đình Giang, Khánh Thy, Nhật Minh, Kỳ Vỹ
The
be
st a m
an
ca
n g
et
Thank you!
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